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yyourself said:
Ben Horowitz: cash flow and fate
Wait till I get my money right Thenyou can not tell me nothing, right? I put money hand you can not find fault, right? - Rapper Kanye West, 'Can not Tell Me Nothing' If you are the entrepreneur, CEO or investment may have heard some of those old fogy said that 'cash is king.' You may also read Twitter prospectus and thinking to himself: 'gang old guy in the end what are you saying?' Has been founded six years have Twitter still burn, it seems, is the king of Twitter, not cash. In this case, I usually just say to myself: 'This issue relates to wisdom, you can understand, but they could not share with others.' But this is too basic wisdom too important, so I tried to on behalf of the gang old guy to start a fictional dialogue. Between 1999 to 2000 I was a founder / CEO, at that time rather than cash king looks more like a slave. That era is 'either big or get out.' All investors keen Internet for profit Nike Hyperdunk and do not care. My company has developed rapidly. Founded less than nine months, I burned a single quarter to $ 27 million. I'm bigger, really do not get out. Then the Internet bubble burst, the idea of ​​investors has changed. They hate everything the Internet, no longer fund any thing can not be self-reliant. After two years of struggle, layoffs and a little after three quiet for a while, we finally make it possible to create the company embarked cash Air Jordan 13 Retro position. But to do so at that time still an open question. We have strong competitors, there are many things to do, and there is very far away from bankruptcy. However, when my co-founder and chairman Marc Andreessen say we want to start income-generating, intuition told me that he was right. As I sat with the team together and tell them Air Jordan 1 that we need to do before Q2 2003 and plans to make a cash flow positive commitment to Wall Street this point, one of my best friends questioned this direction. He pointed out that we burn fewer banks more money, but a list of features a long list of urgent implementation. Questioned why Prison Air Jordan 9 Retro in unnecessarily. Sometimes must rely on such a number of harsh questions to gather the ideas of others. I had the answer with the response to this issue now for entrepreneurs is the same: First, we have to determine how many people we want to cut, because if you do not cut the cash flow has been negative, because if we can not make money, we will decide on the capital market When are we going to the layoffs. In fact, in all the things we have to be very careful to listen to investors, because if they do not like us, we began to die out. I do not know you, but I do not want to be so too. I do not want to be forced to say that all of their staff, we'll do what you believe is the right thing, until investors let us do other things so far. I would like to take charge of their destiny. The manager did not even have to answer, because his eyes told me he knew what I was saying. This has nothing to do with strategy or tactics, only to freedoms. As we believe that the best way to freedom Construction Company. The next five years, investors want us to do many things. Some things Air Jordan 7 Retro are sensible, and some very stupid. We listen to their suggestions, but will always do what we think is right thing and never worry about the consequences. Investors can not control our destiny. We control their own destiny is the result of five years after the company's value increased by 40 times, we can finally make a decision himself. The company's profit growth to large-scale financing There are many examples. In Air Jordan 4 Retro appropriate circumstances and company, this may be a good strategy. For such companies like Twitter which is a good strategy, Air Jordan 1 there are two reasons. First, they do is extremely important things, think they can burst huge cash-generating capacity in the future is a reasonable expectation. Secondly, over the past six years the capital markets are willing to support them (you can take 2000 - 2006 capital market between those practices were compared). So, if you, like Twitter, and living in this era, everything is valid. However, if you do not Twitter, or the passage of time, it would have to be careful. Unless you can generate income, otherwise it is inseparable from investors, even if they are wrong. If investors think that you wake up one day to Air Jordan 7 Retro be finished, then you really going to die. If you can generate income, they can respond to the request as stupid as Kanye capital market: Sorry, you have not said what? Ah ha, pointing to Me a. Note: This article writer is VC Ben Horowitz, originally published in the ATD. Unless noted, articles are original or compiled site, please indicate: articles from 36 Krypton 9:08PM 07/21/15